Illumina Compares Itself to Apple in Rejecting Roche Bid

By Avi Salzman

Genomics company Illumina (ILMN) is certainly not a household name, so it found an analogy to help convince shareholders that a hostile bid from pharmaceutical giant Roche (RHHBY) was too low: “Illumina is like the Apple of the genomics business,” the company announced at the top of a letter to shareholders, quoting from a recent opinion piece about the company. “Tools made by the San Diego company are revered by genomics researchers around the world just like millions of consumers love their iPhones and iPads,” the article continues.

Bold words!

“Our Board of Directors, together with our financial and legal advisors, thoroughly reviewed Roche’s initial offer of $44.50 and the revised offer of $51.00 per share in cash and has unanimously rejected both of these offers on the basis that they are grossly inadequate. Roche’s revised hostile offer is nothing more than the next step in its aggressive campaign to opportunistically acquire Illumina at the lowest possible price.”

Roche argues that the Illumina board is more concerned with their own positions than with their shareholders.

“By not engaging with Roche, Illumina reinforces the notion that its Board and management are determined to preserve their positions rather than maximize shareholder value,” said Roche CEO Severin Schwan in a statement.

Shareholders are expected to vote on the deal at the company’s April 18 annual meeting. As they cast their ballots, will they have the word “Apple” in the back of their minds?

Illumina shares were trading flat early Tuesday at about $51.38 per share.

About Stocks To Watch

Earnings reports, corporate strategies and analyst insights are all part of what moves stocks, and they’re all covered by the Stocks to Watch blog. We also look at macro issues, investor sentiments and hidden trends that are affecting the market. Stocks to Watch gives you the full picture of the U.S. stock markets, all day long.

The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.